Foreign paper industry accused of dumping<\/p>\n
JAKARTA (JP): Six local paper manufacturing industries have
\ngone bankrupt due to dumping by foreign companies, Chairman of
\nthe Indonesia Forestry Community Mohammad (Bob) Hasan says.<\/p>\n
"I have strong evidence indicating that foreign companies have
\nbeen dumping their paper on our market. The price of pulp in
\nIndonesia is already US$610 per metric ton but they sell their
\npaper for $600," he told reporters here yesterday.<\/p>\n
He accused foreign companies of deliberately cutting prices
\nhere to drive local firms into bankruptcy.<\/p>\n
"They are afraid Indonesia will take over the international
\npaper market, as we have done in the plywood market. We have
\nedged many plywood overseas companies out of the market," he
\nsaid.<\/p>\n
Due to these dumping practices, he said local paper firms
\nwould still require protection, "at least until they can compete
\nwith North American firms."<\/p>\n
"We still have the rights to about 10 years of protection
\nbefore the General Agreement on Tariffs and Trade (GATT) requires
\nus to lower our import tariffs," he said.<\/p>\n
American and Canadian paper companies are capable of efficient
\nproduction since they have fully depreciated their plants and do
\nnot have to pay high interest rates, he added.<\/p>\n
"If the dumping practices are not stopped, more local paper
\nmills may have to close down and we will have to depend mainly on
\nimports," he warned.<\/p>\n
He said that a pulp manufacturer requires at least $1 billion
\nin investments and a paper plant about $500 million.<\/p>\n
The Antara news agency quoted the Chairman of the Indonesian
\nPulp and Paper Association M. Mansur as saying that local paper
\nproducers still require tariff protection.<\/p>\n
Paper is subject to a 25 percent import duty and 10 percent
\nvalue-added tax.<\/p>\n
He said that without protection, local manufacturers are
\nunable to compete with American, Canadian and Japanese firms that
\nsell their products at reduced prices. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-paper-industry-accused-of-dumping-1447899208",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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